New Delhi, Feb. 3 -- Dear reader,

Last week, I wrote that the coming weeks would be crucial for the markets. There are still enough pending news triggers in the pipeline to influence sentiments significantly enough to provide some surprises.

The US Fed kept rates unchanged along expected lines. The cost of funds will probably rise further before they ease. At the time of writing this piece, the budget was a minor trigger for the markets. The new Income Tax Act is yet to be announced, and the fine print of the budget is yet to be dissected. The tax exemption threshold being raised is a welcome step, though the real benefit accruing to a tax payer needs to be examined under a microscope.

Two things about the budget and its possible fallo...